Sued by McDonald's, a Santa Cruz Eatery Refuses
to Cowtow

Controversy - People Magazine

Although he and his partner, Bernard Shapiro, are
vegetarians, Daniel Prather deadpans, "We're suffering a Big Mac attack." Seems that McDonald's
has a beef with Shapiro, 39, and Prather, 34, the owner and operators of
McDharma's, a popular veggie eatery in Santa Cruz, Calif. Their un-burger
joint, which grossed over $320,000 last year, counts the likes of Rae Dawn
Chong and Kenny Loggins among its fans. On April 13, however, as Shapiro
and Prather were serving up their meatless Brahma Burgers, Dharma Dogs and
I'm Not Chicken Patties, they were served a court order by McDonald's. Miffed
over the "Mc" in McDharma's name, the chain is suing for breach
of agreement. "They're Mc-mad at us," says Prather.

This isn't the first time these small fries have
sparred with the giant. When the two former yoga teachers opened the restaurant
in 1982, their idea was to pair convenience with healthy food, so they
combined the "Mc" of
fast-food fame with dharma, Sanskrit for "virtue." Seeing it more
as a vice, McDonald's blocked the use of McDharma's as a legal trademark
in 1984 and threatened suit in 1986. Prather and Shapiro settled out of court
in February 1987, accepting an undisclosed sum from McDonald's ("It
was enough," says Shapiro, "for a couple of burgers, some fries
and a shake") to change their name. The partners listed the beanery
as Dharma's in the phone book and painted the international symbol for "forbidden" -
a red circle with a diagonal slash - over the "Mc" on their sign. "It
was just a joke," says Shapiro.

McDonald's isn't laughing. According to its 1987
agreement with the two owners, "McDonald's is the exclusive owner of the 'Mc' mark for restaurant
services." Adds John Onoda, McDonald's director of media relations: "McDharma's
has breached the agreement.#&34; Prather and Shapiro, who must answer
the complaint by May 3, disagree. They vow to defend themselves in court
on grounds of freedom of speech. Just in case they lose, however, they're
considering new names. "How about Dharma King?" suggests Shapiro. "Or
Dharma-in-a-Box?"